ConnectOne Bancorp reports Q4 adjusted EPS 61c, consensus 62c » 07:0501/2301/23/20
As of December 31, 2019,…
As of December 31, 2019, the Company's tangible common equity ratio and tangible book value per share were 9.37% and $16.06, respectively. As of December 31, 2018, the tangible common equity ratio and tangible book value per share were 8.77% and $14.42, respectively. Tangible book value per share increased $0.45, or 2.9%, from the third quarter of 2019. Frank Sorrentino, ConnectOne's Chairman and CEO, stated, "This past year was one of strategic growth and outstanding execution for ConnectOne. We delivered record earnings and achieved strong deposit and loan growth. Credit quality remains solid while we also continue to be one of the most efficient banks in the country. We're also pleased with the groundwork we're laying for our continued long-term success and recently crossed over the $7 billion mark in total assets. On January 2, 2020, we completed the acquisition of the approximately $1.0 billion Bancorp of New Jersey, Inc. A financially savvy acquisition, this in-market transaction enhances our desirable franchise and provides attractive in-market growth opportunities. We're on track to meet, or exceed, all financial metrics disclosed when the transaction was announced and expect to achieve cost savings in excess of the previously announced 60%. We're very pleased with our fourth quarter results, which reflected continued strong core performance and excellent execution across the organization. We continue to operate with a return on tangible common equity in excess of 15% and a return on assets of approximately 1.40%. New loan originations were $243 million for the quarter, reflecting strong activity in our C&I segment. The strong originations, however, were largely offset by elevated loan payoffs, especially in our construction portfolio, which served to reduce sequential growth in total loans to only 2.1% annualized, which is well below our historical trend. Our pipeline remains strong and we continue to target a future growth rate in the 7.5%-10.0% range. On the funding side, we were particularly pleased with a very much improved deposit mix -- average noninterest-bearing demand deposits increased by more than 16% annualized and time deposits fell by a similar percentage -- and our loan to deposit ratio declined to 107%. Our efficiency ratio was 41.8% and tangible book value per share increased by $0.46 during the quarter to $16.06. Tangible book value per share has increased by 11.3% over the past year. Looking ahead, we remain diligently focused on our strategic priorities, which include solid organic growth in loans and deposits, improvements in operating efficiency through use of technology and superior returns on investor capital. On the M&A front, we are focused on flawless execution on completed transactions and remain opportunistic regarding potential future deals."
|Over a week ago|
ConnectOne Bancorp completes acquisition of Bancorp of New Jersey » 07:0301/0201/02/20
ConnectOne Bancorp (CNOB)…
ConnectOne Bancorp (CNOB) announced the completion of its previously announced acquisition of Bancorp of New Jersey (BKJ), parent of Bank of New Jersey. In accordance with the terms of the Agreement and Plan of Merger, dated August 15, 2019, BKJ merged with and into ConnectOne, effective January 2, 2020. Subject to the allocation and proration procedures set forth in the merger agreement, shareholders of BKJ common stock had the right to elect, with respect to each share of BKJ common stock, to receive either $16.25 in cash or 0.780 of a share of CNOB common stock. The allocation and proration procedures set forth in the merger agreement require that approximately 20% of the shares of BKJ common stock must be converted into cash and the remaining approximately 80% of BKJ common shares must be converted into shares of ConnectOne common stock. Due to these allocation and proration procedures, BKJ shareholders may not receive the exact form of consideration elected, and due to the election and proration procedures a BKJ shareholder may receive a greater or lesser amount of cash or shares than elected. After the closing, ConnectOne's Board of Directors expanded, as agreed to in the merger agreement, to 12 members to include former BKJ director Mark Sokolich. The new independent Director, Mr. Sokolich, is an attorney and Managing Partner of Mark Sokolich, Esq., a Fort Lee, New Jersey law firm. He has represented various banking clients in commercial and residential real estate. Additionally, he's the Mayor of the Borough of Fort Lee and is a former councilman.
|Over a month ago|
Fiserv, SurveyMonkey among stocks dropped from Stephens Best Ideas list » 07:2412/2712/27/19
FISV, TSN, ATSG, ABCB, CNOB, FMC, HP, NBL, OMF, ORLY, OBNK, PAG, SVMK, UNP, WTFC, AME, TAST, NXST, PWR, RP, VG, VMC, ZNGA
Ahead of the publication…
Ahead of the publication of the firm's new Best Ideas list for 2020, Stephens announced the stocks that it will be dropping, which includes Fiserv (FISV), SurveyMonkey (SVMK), Tyson Foods (TSN), Air Transport Services (ATSG), Ameris Bancorp (ABCB), ConnectOne Bancorp (CNOB), FMC Corporation (FMC), Helmerich & Payne (HP), Noble Energy (NBL), OneMain Holdings (OMF), O'Reilly Automotive (ORLY), Origin Bancorp (OBNK), Penske Automotive (PAG), Union Pacific (UNP) and Wintrust Financial (WTFC). Stocks that are being held over for the 2020 Best Ideas list include Ametek (AME), Carrols Restaurant (TAST), Nexstar (NXST), Quanta Services (PWR), RealPage (RP), Vonage (VG), Vulcan Materials (VMC) and Zynga (ZNGA).
ConnectOne, Bancorp of New Jersey expect merger to close on, about Jan. 2 » 07:1012/1312/13/19
ConnectOne Bancorp (CNOB)…
ConnectOne Bancorp (CNOB) and Bancorp of New Jersey (BKJ) said as previously announced, the merger of BKJ with and into ConnectOne is expected to close on or about January 2, 2020. The deadline for holders of BKJ common stock and certain BKJ equity awards to elect the form of consideration they wish to receive in the merger is 5 p.m., EST, on December 30, 2019. As previously announced, holders of BKJ common stock and certain BKJ equity awards may elect to receive, for each share of BKJ common stock, either $16.25 in cash, 0.780 of a share of CNOB common stock, or a combination of cash and shares of CNOB common stock. The cash and stock elections will be subject to allocation and proration procedures, which are described in the election materials, the Joint Proxy Statement/Prospectus, dated October 18, 2019, and in the Agreement and Plan of Merger, dated as of August 15, 2019, by and among ConnectOne and BKJ. The allocation and proration provisions in the merger agreement are designed to ensure that, on an aggregate basis, approximately 80 percent of the shares of BKJ common stock outstanding immediately prior to the completion of the merger will be exchanged for CNOB common stock, and approximately 20 percent of the shares of BKJ common stock outstanding immediately prior to the completion of the merger will be exchanged for cash. A complete description of the allocation and proration procedures is included in the Joint Proxy Statement/Prospectus, which was previously provided to equity holders of BKJ in connection with BKJ's special meeting of shareholders.
ConnectOne Bancorp receives regulatory approvals for Bancorp of NJ deal » 17:0311/1811/18/19
ConnectOne Bancorp announced that its wholly-owned bank subsidiary, ConnectOne Bank, has received regulatory approvals to proceed with its previously announced acquisition of Bank of New Jersey, a New Jersey state-chartered bank and wholly-owned bank subsidiary of Bancorp of New Jersey, Inc. Approval was granted by both the New Jersey Department of Banking and Insurance and the Federal Deposit Insurance Corporation. Additionally, the company announced that it has previously obtained from the Board of Governors of the Federal Reserve System a waiver from the application requirements of Section 3 of the Bank Holding Company Act of 1956, as amended, with respect to the merger of Bancorp of New Jersey, Inc. with and into the company. The proposed transaction, which is expected to close early in the first quarter of 2020, remains subject to the approval of the company's and Bancorp of New Jersey, Inc.'s shareholders and other customary closing conditions. ConnectOne and Bancorp of New Jersey, Inc. will hold their respective shareholder meetings on December 9, 2019 to vote on the proposed acquisition.
ConnectOne Bancorp named 'top pick and best idea' at Stephens » 07:0911/0811/08/19
Stephens analyst Matt…
Stephens analyst Matt Breese named ConnectOne (CNOB) as his top pick and Best Idea, replacing the firm's prior Best Idea in Northeast banks, Signature Bank (SBNY). He believes ConnectOne can show margin stability and core margin expansion in 2020 despite a challenging inverted yield curve as deposit cost reductions are expected to more than offset yield reductions, Breese tells investors. He maintains an Overweight rating and $27.50 price target on ConnectOne shares.
|Over a quarter ago|
ConnectOne Bancorp resumed with an Overweight at Stephens » 16:3510/2810/28/19
Stephens analyst Matt…
Stephens analyst Matt Breese resumed coverage of ConnectOne Bancorp with an Overweight rating and $27.50 price target and named the stock his top pick given his view that the Fed will continue to cut rates and investors will "continue to veer towards banks with promising ROA, margin and growth outlooks at attractive valuations." He sees the bank pushing further "into the sweet spot of bank valuations" between $5B and $10B in assets, Breese added.
ConnectOne Bancorp reports Q3 adjusted EPS 60c, two est. 57c » 07:4410/2410/24/19
CEO Frank Sorrentino…
CEO Frank Sorrentino stated, "We are extremely pleased with our third quarter results, highlighted by record quarterly earnings, meaningful margin expansion and increases in noninterest income, as we continued to drive value during a challenging interest rate and operating environment. We once again delivered solid deposit and loan growth and maintained our strong performance metrics. Average total deposits increased sequentially by $174 million, or 15.4%, on an annualized basis; while average total loans increased by $122 million, or 9.7%, on an annualized basis. Our net interest margin widened by approximately 15 basis points, both on a GAAP and on an adjusted basis, while most of the industry experienced margin contraction. The widening resulted from core growth, improved balance sheet mix and pricing discipline. Return on assets exceeded 1.4% and return on tangible common equity was 16%. Meanwhile, our efficiency ratio remained among the best in the industry at 41.1% and tangible book value per share increased by more than 50 cents during the quarter to $15.60. Tangible book value per share has increased by 12.4% over the past year. In addition to our record third quarter financial performance, we are pleased with the groundwork we're laying for the continued long-term success of the business. Our outlook for the remainder of 2019 and 2020 is extremely positive and we remain well-positioned to capitalize on meaningful growth opportunities throughout our New York and New Jersey metropolitan target market. I'm equally excited about our recently announced in-market acquisition of Bancorp of New Jersey, Inc. This is a financially savvy, accretive acquisition with strong economics to enhance our powerful franchise. Given its commercial business focus, overlapping geographic footprint, shared client base and the considerable synergies that are expected, we believe Bancorp of New Jersey is a natural fit for ConnectOne and the transaction remains on target to close in early 2020."
ConnectOne Bancorp to acquire Bancorp of New Jersey for $15.48 per share » 06:5808/1608/16/19
ConnectOne Bancorp (CNOB)…
ConnectOne Bancorp (CNOB) and Bancorp of New Jersey (BKJ) announced a definitive agreement under which ConnectOne will acquire Bancorp of New Jersey. The acquisition is intended to accelerate ConnectOne's strategic focus on increasing client relationships, capitalizing on growth opportunities throughout the company's New York and New Jersey target metropolitan market. Bancorp of New Jersey will add approximately $800M of deposits and loans to ConnectOne. This transaction is approximately 5% accretive to ConnectOne's earnings per share and 3% dilutive to tangible book value per share at closing, excluding the impact of potential revenue enhancement opportunities. The banks have a pro forma combined company total assets of $7B, deposits of $5.4B and loans of $5.9B. Under the terms of the agreement, Bancorp of New Jersey shareholders will have the right to receive, for each share of Bancorp of New Jersey common stock either 0.78 shares of ConnectOne common stock or $16.25 in cash. Bancorp of New Jersey shareholders will have the right to elect all stock consideration, all cash consideration or a combination thereof, subject to customary pro-ration procedures which will result in an aggregate stock/cash consideration mix of 80%/20%. The transaction is presently valued at approximately $113M in the aggregate, or approximately $15.48 per Bancorp of New Jersey share, based upon the closing common stock price of $19.60 for ConnectOne Bancorp as of August 15. The transaction has been unanimously approved by the boards of both companies and is expected to be completed in Q1 of 2020, subject to approval by shareholders of both Bancorp of New Jersey and ConnectOne, as well as regulatory approvals and other customary closing conditions. Effective at the closing of the transaction, one current director of Bancorp of New Jersey's board will join the board of both ConnectOne Bancorp and ConnectOne Bank.
ConnectOne Bancorp reports Q2 adjusted EPS 57c, consensus 58c » 07:1107/2507/25/19
CEO Frank Sorrentino…
CEO Frank Sorrentino stated, "ConnectOne Bank's second quarter results were highlighted by continued organic loan growth and solid asset quality. Total loans grew by nearly 10% sequentially on an annualized basis, with a majority of our growth attributable to higher yielding segments, while multi-family and other CRE lending were essentially flat. Our net interest margin contracted from the sequential quarter by 4 basis points, negatively impacted by several factors including rising costs of funding, a flatter yield curve, prepayments in mortgage backed securities, and slightly lower prepayment fees. The margin outlook remains challenging. However, we are beginning to see a reduction in deposit costs as well as a benefit from our improved loan mix. We also expect to benefit from a recent repurchase of some of our FHLB borrowings. Our performance metrics continue to reflect across-the-board financial strength. Return on assets was about 1.3%, return on tangible common equity was 14.8% and, on an adjusted basis, 15.5%, tangible book value per share increased by $0.34 to $15.01, and our efficiency ratio was 41.4%. Our credit quality remains sound. During the first quarter, as previously reported, we had a charge relating to a single loan secured by a commercial office building. Reflecting our philosophy of addressing issues expeditiously and to build timely resolutions, that situation was resolved favorably during the second quarter - the asset was foreclosed on and sold - resulting in a slight recovery. Additionally, in June, we finalized our previously announced acquisition of BoeFly. An online business lending marketplace, BoeFly helps to connect small- to medium-sized businesses with professional loan brokers and lenders across the United States. We already have experienced a strong cultural alignment with their FinTech-focused entrepreneurial team, and remain committed to supporting and enhancing the digital lending platform which is expected to augment fee income and generate profitable SBA lending opportunities."